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mini question 8 goodwill

Ssan11y ago
Dear sir could you explain how do we get retained earning 11500 ie [21000+2000]/6 from april to sep 6 months so (21000/6) where do we get 2000 from? thanks in advance
MikeLittleMikeLittleTutor11y ago#1
From memory, isn't it the loan interest where the loan was created only at date of acquisition?
Ssan11y ago#2
Dear sir there is no loan interest in this sum and i know 20 million will be fair value adjustment for goodwill calculation, and is there a amortisation ? . question says :In addition S owns the registration of a popular internet domain name. The registration, which had a negligible cost, has a ?ve year remaining life (at the date of acquisition); however, it is renewable inde?nitely at a nominal cost. At the date of acquisition the domain name was valued by a specialist company at $20 million. The fair values of the plant and the domain name have not been re?ected in S’s ?nancial statement thanks in advance
Ssan11y ago#3
Dear sir there is no loan interest in this sum and i know 20 million will be fair value adjustment for goodwill calculation, and is there a amortisation ? . question says :In addition S owns the registration of a popular internet domain name. The registration, which had a negligible cost, has a ?ve year remaining life (at the date of acquisition); however, it is renewable inde?nitely at a nominal cost. At the date of acquisition the domain name was valued by a specialist company at $20 million. The fair values of the plant and the domain name have not been re?ected in S’s ?nancial statement thanks in advance
MikeLittleMikeLittleTutor11y ago#4
Well spotted San! I have missed an important point from the question! If you look at past papers for F7, December 2009, question 1, point 2, I believe that you will find the reason for 11,500 If you still don't understand, let me know Meanwhile, thank you for pointing out this error - my bad, I'm sorry
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